The Status Of Bargaining Between Banks And The Ministry Of Railways Is Difficult To Change &Nbsp; Industrial Chain Enterprises' Credit Is Affected.

The four largest state-owned banks said on the 29 day that they will not raise the loan interest rate of the Ministry of Railways due to accidents. Experts believe that after the "7. 23" motor vehicle accident, the status of bargaining between banks and the Ministry of Railways will not change significantly, but the credit risk of some enterprises in the high-speed rail industry chain will be improved.

In recent years, Bank More emphasis has been placed on credit investment in the railway and rail transportation industry, and some have even promoted it to a strategic level. In February this year, ABC signed a strategic cooperation agreement with China Railway Construction (601186), promising to provide 100 billion yuan of intentional financing in the next three years. In July, the bank also signed a strategic cooperation agreement with China Railway Materials to support the development of China's railways. ICBC and CCB also work closely with the Ministry of Railways and have credit for several projects.

After the accident, the debt problem of the Ministry of Railways aroused social concern. The Ministry of Railways issued the main financial and business data report in the first quarter of 2011, showing that the total liabilities of the Ministry of Railways reached 1 trillion and 980 billion yuan at the end of the first quarter of this year, with a total assets of 3 trillion and 410 billion yuan and a debt ratio of 58%. Data show that in 2010, the Ministry of Railways increased 450 billion yuan in loans and the total domestic loans amounted to 1 trillion and 250 billion yuan.

At the recent working conference of the CBRC, Liu Mingkang, chairman of the CBRC, said that he should stick to the "red line" in concentration risk and deal with the loan problems of railway system and highway construction seriously.

A regulatory official told reporters that the request to pay attention to railway system credit was aimed at risk warning and did not require banks to stop lending to the railway system, but to railways. security Loans for system transformation and other aspects should be supported.

Experts believe that the status of bargaining between banks and the Ministry of Railways will not be fundamentally changed because of the accident. Even if interest rates change, it is also based on the recent financial environment that has tightened monetary policy.

Zhao Qingming, senior research fellow of China Construction Bank (601939), believes that the Ministry of Railways has a large demand for deposits, loans, bonds and other business needs, and has good returns. The risk is low, and it will become a good customer for all banks to compete. "An accident will not affect the credit rating of the Ministry of Railways in the bank, and will not change the status of the Ministry of Railways and banks."

Guo Tianyong, director of the Bank of China (601988) industry research center of Central University of Finance and Economics, also said that after experiencing this change, the Ministry of Railways' credit risk will be improved to a certain extent, but its credit based on its huge operation system will not be affected too much.

A state-owned large commercial bank credit officer told reporters that the Ministry of Railways as the focus of competition among many banks, the original negotiating advantage is obvious, usually in the benchmark interest rate to float 10%. At the beginning of this year, the tightening of monetary policy, the loan amount of major clients affected, and the bargaining space also improved. In 3 and April, the benchmark interest rate fell 5%. "In fact, the loan interest rate of the Ministry of Railways has reached the benchmark interest rate before the accident occurred in early July. Because of limited bank credit, the financing cost of such a large client like the Ministry of Railways is rising. "

The four major state-owned commercial banks, such as industry, agriculture, China and construction, said on 29 that they would not raise the loan interest rate of the Ministry of Railways due to accidents. CCB related responsible person pointed out that the Ministry of Railways is a big client, it is impossible for the two sides to cooperate because of the accident, interest rates can not be arbitrarily changed, but will take a more cautious attitude towards new projects.

Some analysts pointed out that although the overall credit of the Ministry of Railways will not change significantly, the loans of enterprises such as locomotives and engineering construction on the high-speed rail industrial chain will be affected.

Zhao Qingming said that after the accident, the recovery period of the initial investment of some EMU projects may be extended, and the loan risk has been improved.

In addition, he believes that the impact of the accident on the securities market should be greater than that in the banking sector. At present, the amount of railway debt issuance is relatively large, involving securities companies, fund Companies and many other institutions are sensitive to market information and will have more obvious impact.